(Yicai Global) Dec. 16 -- China Baowu Steel Group, the world’s largest steel producer, will spend CNY5.7 billion (USD873 million) to develop Wuhan Industrial Port into a modernized industrial harbor, The Paper reported today. 

The logistics arm of Wuhan Iron and Steel, a unit of Baowu Steel, inaugurated the project yesterday, the report said. The aim is for the port to be able to provide trading, financial, logistics, processing and other comprehensive services for Wuhan, the capital of Hubei province, and other parts of Central China.

When the project is complete, the port will be a distribution hub for commodities and production materials in Central China, and will serve steel plants and clients in Baowu’s system, according to the executive in charge of Wuhan Iron and Steel’s logistics unit.

Located in Qingshan district on the Yangtze river, construction of the port started in the 1970s. It can handle 30 million tons or cargo a year.

Created through the 2016 merger of Shanghai Baosteel Group and Wuhan Iron and Steel Group, Baowu Steel also acquired 51 percent of Magang Group Holding last year, taking its annual output to 95.5 million tons.

Editor: Tom Litting